Boeing Will Terminate More Than 4,500 Workers

Boeing Will Terminate More Than 4,500 Workers:

Now that Yellen has taken us back to square one where the worse the news, the better for assets, the latest announcement by Boeing, which overnight announced it will eliminate about 4,000 jobs in its commercial airplanes division by the middle of this year and another roughly 550 jobs in a division that conducts flight and lab tests, should help push the iconic ExIm bank-supported company’s shares to new 2016 highs.

According to Reuters, the planemaker will reduce 1,600 positions in the commercial airplanes division through voluntary layoffs, while the rest of the cuts are expected to be completed by leaving open positions unfilled, spokesman Doug Alder said.

“While there is no employment reduction target, the more we can control costs as a whole the less impact there will be to employment,” Alder said.

The job cuts, which will include hundreds at executive and managerial positions, will not done through involuntary layoffs, Alder said.
Boeing will also cut about 10 percent of the approximately 5,700 jobs in its test and evaluation division, which conducts flight and lab tests, spokeswoman Sandra Angers told Reuters. The company had a total of 161,400 employees as of Dec. 31.

Reuters had reported last month that Boeing was considering offering voluntary layoffs to its professional engineers and technical workers.

In February, Ray Conner, chief executive of Boeing’s airplane business, warned employees that job cuts were necessary to “win in the market, fund our growth and operate as a healthy business.”

The Seattle Times had earlier reported that Boeing has taken steps to reduce its workforce.

And now we await president Obama to threaten 4,500 soon to be former Boeing workers to ignore the fiction peddlers and instead focus on daytrading the stock market, or better yet, the dollar: that 50x FX leverage should come in very handy in the “wealth creation” process.

 

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